Macro Environment Analysis And Overview

The authorities plays an of import factor in any concern ‘ success. With the stableness of political relations, Singapore authorities has many policies to back up concern by supplying a stable economic system ; low involvement rates Bankss and fight of the revenue enhancement system. It is of import component for company to develop their merchandise. Singapore has no limitations on foreign exchange direction and Singapore dollar can covert so it is a positive factor for foreign investors to reassign capital and net incomes in and out of Singapore. Singapore authorities does non curtail foreign investors to protect domestic industry for any ground. Thus, companies feel safe to turn and spread out its concern in Singapore.

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Singapore is well- known as extremely dynamic developed state. A stable economic system non affected by rising prices and fluctuations in the market is one of of import factor for company ‘s success. Harmonizing to the latest study 2010 by the World Bank about the appraisal of concern environment, Singapore ‘s economic system is considered to be the easiest environment for making concern and investing. Singapore Gross Domestic Product histories for 0.29 % of the universe economic system about 182 billion dollars. The more development economic system, the more sums of money consumers passing for shopping so this is a favourable status for development of Zara merchandises.

Social and Cultural

Singapore located in the center of South East Asia states which are cardinal of the trade and economic sciences brings a batch of diverseness for their civilization and societal life. Based on the demographical, Singaporean is celebrated with the multi- moralss people and civilization. Entire population in Singapore was about 4.99 million in Jun 2009 with 77 % of Chinese, Malay 14 % and 7.6 % of India. Since nationality in Singapore assorted every bit good as their civilization, its instantly consequence the civilization and wonts of the people in Singapore. The traditional household values are still conserved but the younger coevals has bit by bit adapted to the civilization and life style of Western Europe. Thus the Zara ‘s merchandise can partly run into the demands of immature people for usability design.

Technology Factors

With the development of information engineering, it can impact on many sorts of things such as distribution schemes, media schemes, etc. Harmonizing to Infocomm Development Authority of Singapore, a entire Internet user in Singapore is 3,370,000 as of June 2010, approximately 77.8 % of the population. Company can develop direct gross revenues via the company ‘s website hypertext transfer protocol: // or utilize the online advertisement methods such as nexus selling, streamer advertisement.

Swot analysis of Zara


Zara ‘s merchandises are designed as a speedy manner. The other manner normally takes about three to five months to make a new seasonal aggregation after experts need to foretell a new manner tendency that clients want. For Zara, alternatively of foretelling manner tendencies, they ask, listen and proctor of what clients want. Each employee is equipped a personal digital helper to roll up client remarks about their merchandises. The information will be collected and sent straight to headquarter. So Zara can be able to administer the new merchandise to the clients within 2 hebdomads. Besides that Zara has effectual sale system, merely those merchandises with the highest demand will be in shops that allow for more popular points to look in during the season in which its gross revenues are high. To make particular and alone designs, Zara use its ain cloth and dyes. Zara besides has the rare advantage in their apparels because of the sum of stock list is really low, merely sold in shops in a limited figure and so clients do non ever see the same merchandise twice in Zara.


Zara does non hold a main information officer must take duty for information engineering and computing machine systems that support concern aims. In add-on, Zara should pass a big disbursal for research and development to react rapidly and expeditiously the demand and privation of client every bit good as for the fast debut and frequent of new merchandise. The company must give high costs for the uninterrupted upgrading of production techniques to make their different entreaty lines. With that, the company must pass money to develop staff in utilizing new production engineerings and that is the cause of cost additions. Along with the usage of euro-centric theoretical account has caused monetary values of apparels to mount in some topographic points.


Zara Company has strong chance of development in Singapore because the company can anticipate to increase sale due to the growing of Singapore economic system. As a consequence, the quality of populating criterion will be increase so Singaporean will hold excess money to pass on shopping. Besides that, Singapore has the ability to pull big Numberss of tourers to see and shopping for many different intents. Harmonizing to the Singapore Tourism Board, in January 2010, Singapore welcomed a sum of 908,000 tourers, over the same period last twelvemonth addition by 17.5 % . And the gap of the two incorporate resorts in Marina Bay and Sentosa, every bit good as the Gardens by the Bay in Marina South will be a encouragement for the touristry industry. Singapore is besides place of many great events, for illustration Youth Olympic Game 2010 from 14 August to 28 August 2010. This is a good concern chance non merely for Zara to sell their merchandise but besides for many other service industries.


The menace for Zara is direct competition. Zara ‘s merchandise toward the mark clients are in-between and high-toned people, there is besides the mark market of other company like Gap, Guess, Calvin Klein, etc. Key tools used by rivals are monetary value, quality and design. As a consequence of Zara trade name has broad scope so it faces rival at every monetary value point from luxury to be decrease. The following menace, Zara has merely one centre of production and distribution worldwide hence the hazard associated with merely one Centre. Today advertisement has become an of import portion of every concern because it straight affects the gross revenues. Zara ‘s in-store advertizement theoretical account may non work traveling frontward. The important menace to the success of Zara is that while Zara find it hard to pull off the perpendicular theoretical account, local retail merchants can follow Zara ‘s expression for success and they can emerge.


3.1 Selling

Zara ‘s selling aim is to increase client equity to heighten client trueness and addition more net income. It can be done by:

Improve client satisfaction

Enhance trade name consciousness

Increase client ‘s purchase frequence

Continue to turn by widening the Zara manner trade name

3.2 IMC

Aims set out what the concern is seeking to accomplish. The chief aim of IMC is to inform client about the reaching of new merchandises, publicities and raise consciousness of merchandise within a clearly identified mark market every bit good as create positive feelings for clients in order to promote purchase purpose.


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